Business
Capital Bancorp, Inc. Reports Third Quarter 2023 Net Income of $9.8 million, or $0.70 per share
Net Income Expands 33.8% with Improved Net Interest Margin from 2Q 2023Diluted EPS of $0.70, ROAA of 1.75%, and ROAE of 16.00% for 3Q 2023Loan and Deposit
About this update from Capital Bancorp, Inc.
[{"type":"text","content":"Net Income Expands 33.8% with Improved Net Interest Margin from 2Q 2023Diluted EPS of $0.70, ROAA of 1.75%, and ROAE of 16.00% for 3Q 2023Loan and Deposit Growth Generates Positive Operating LeverageTangible Book Value Per Share(1) of $17.48 for 3Q 2023 up 15% from 3Q 2022Cash dividend of $0.08 per share declared ROCKVILLE, Md., Oct. 23, 2023 (GLOBE NEWSWIRE) -- Capital Bancorp, Inc. (the \"Company\") (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the \"Bank\"), today reported net income of $9.8 million, or $0.70 per diluted share, for the third quarter 2023, compared to net income of $7.3 million, or $0.52 per diluted share, for the second quarter 2023 and $11.1 million, or $0.77 per diluted share, for the third quarter 2022. For the quarter, total average deposits increased $37.1 million and the average loan portfolio grew $42.9 million. In addition, the net interest margin of 6.71% for the third quarter 2023 improved when compared to 6.63% for the second quarter 2023. Adjusted net interest margin(1) (excluding credit card and SBA-PPP loans) of 4.05% for the third quarter 2023 remained stable when compared to adjusted net interest margin(1) of 4.06% for the second quarter 2023. The Company also declared a cash dividend on its common stock of $0.08 per share. The dividend is payable on November 22, 2023 to shareholders of record on November 6, 2023. \"Our business model is proving to be stable and resilient against a challenging backdrop,\" said Ed Barry, Chief Executive Officer of the Company and the Bank. \"Our focus on core deposit relationships and differentiated lending has enabled profitable growth. We continue to make investments in technology, people, and asset generation that should further strengthen our franchise. Credit remains stable and we maintained high capital levels allowing us to be opportunistic moving forward.\" “The Board is pleased with our improved quarter over quarter performance,” said Steven J. Schwartz, Chairman of the Company. \"Our continued, stable net interest margin, coupled with growth in loans and deposits, enabled our ROAA and ROE to bounce back nicely and positions the Bank for continued best-in-class performance. In addition, we are gratified by our year-over-year growth in tangible book value per share, particularly considering the challenges facing banks today due to a rapidl...